A model to estimate higher education enrollments and cost effects of financial aid plans is presented. A combination of the freshman demand and transition models allows the prediction of high school graduates who enter colleges, complete sequential levels of education, and complete degree programs. The freshman demand model is adapted from that of Radner and Miller. Six income intervals are used to calculate freshman demand. Policy plans involving work study payments, student loans, and student grants are analyzed using the model. Plans of the Carnegie Council on Policy Studies in Higher Education, a plan of the Committee on Economic Development, and a variant of these plans are used. The cost of each plan per student in each income group attending public and private higher education institutions are calculated. All of the plans increase the demand for higher education; comparison of the plans are presented. A model for forecasting student enrollments in higher education institutions developed by the National Commission on the Financing of Postsecondary Education is critiqued and compared to the model used in this study. (SW)